The Compounding Interest of Entrepreneurship

Firstly, check out this cool (well… kind of cool) slideshow I created using powerpoint & uploaded it via It’s for my newest website which is also my main business…

Secondly, after this post read How I Built a Blog with 6,500 readers on (weird URL, awesome blog) this is probably the best blog post I have read this year and is all about how to make your blog or online business mucho profitable. He outlines great tactics that he used himself and for those of you who are striving to be extraordinary in your blogging or entrepreneurial pursuits this guy is for you!

Now to the main attraction…

The Compounding Interest of Entrepreneurship

When you first start any business expect to work really, really hard. Imagine a graph where effort is one side and ROI but instead of the more effort = more ROI it goes less effort = more ROI. This is the art of compounding interest applied to entrepreneurship and its totally real.

I work less now than I did 6 months ago, get more done and make more money. How did I do it? Well heck I don’t know but I know it follows the 80/20 principle and the theory of compounding entrepreneurship.

With every investment, business opportunity & even personal relationship, eventually you hit a tipping point & push through, then the going gets a lot easier.

So what is the catch?

I often refer to the four hour work week, a bestseller on escaping the 9 to 5 and one of my favorite books. But one thing the 4 hour work week left out is emphasizing the insane work it takes to get there. You may have to work 80 hours a week to build your own business or to develop a passive income stream that will allow you to truly work only four hours a week but isn’t the effort worth the payout?

Crunch the numbers…

The entrepreneur’s route: You work 10 hours a day, 6 days a week for 1.5 years = 4,695 hours of work.  Then the road gets a little easier, you only work 6 hours a day for 4 days a week for a whole year = 1,248. Soon there after you get to the goal of working only 4 hours a week to sustain your business and you work for 10 more years before selling your empire and retiring = 2,080. Total hours worked for millions of dollars in the bank and the ability to lead life on your own terms: 8,023.

Now at first glance you may think, wow! I don’t want to put out that much effort. If so grow up and stop reading now.

Now lets observe the regular 9 to 5, work for the man job. 8 hours a day for 5 days a week for the next 30 years (yes i know I’m not taking in holidays/vacations etc) = 62,4000 hours of your life! How much return to you get on that? Maybe a decent retirement package, maybe some money in your 401k. Definitely no social security (get real people it’ll be WAY dried up by then) and you lost 30 years of your life.

Entrepreneur’s journey or the typical 9 to 5 grind? Which do you chose?

8 hours a day for 5 days a week for the next 30 years.

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